Cisco restructures into 11 technology groups

Published on August 24, 2001.

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San Francisco--Hammered by the downturn in the technology sector, Cisco Systems Inc. said Thursday that it was restructuring into 11 technology groups to streamline its marketing and engineering operations. The computer network equipment maker also said its sales declines were starting to stabilize. Cisco said it was making the move to the 11 groups from its current lines of business structure to reflect the blurring lines between customer segments, and added that the move was customer and market driven. Cisco last reorganized in 1997, when it restructured into three lines of business to target the service provider, commercial and enterprise markets. The 11 groups are: access; aggregations; Cisco IOS Technologies, which is its operating system that runs its network gear; Internet switching and services; Ethernet access; network management services; core routing; optical; storage; voice; and wireless. Mario Mazzola, former VP for Cisco's new business ventures, will oversee the 11 technology groups. In early August, Cisco reported a fourth-quarter net profit of $7 million, down 99% from $796 million a year earlier. The company has also slashed 8,500 jobs. In early morning trading on Friday, Cisco shares were up 5%, to $17.71.